Exchange of contracts - Covid rider
MoreGinPlease2020 · 27/08/2020 15:16
We're hoping to exchange contracts on a sale and purchase next week, with completion 7 working days later. Our lender requires a week's notice anyway and our sellers need 7 clear working days for various unavoidable reasons.
Our solicitor has asked whether we want a Covid rider in the contract in case of a further lockdown preventing completion or holding up funds if there are problems with the banks meaning funds aren't transferred in time.
It's a short chain of only two houses - a first time buyer buying ours, and our sellers are going abroad so are not buying anything. I'm pretty relaxed about not needing this, partly given everyone involved is local and we're (currently) in a low risk area, but has anyone else come across this and have thoughts either way? My main concern is that negotiating an amendment to the contracts (which are already signed) will delay exchange and therefore completion. I'll be nearly 8 months pregnant when we complete so a delay to completion means we may have to pull out entirely.
missmarplesapprentice · 27/08/2020 16:24
I think considering you only have 7 days between exchange and completion then you probably don't need it.
We have it in our contract as we are purchasing a new build which has now been delayed till January. We insisted it was there for our own protection.
It is likely that there are already penalty clauses included for anyone delaying completion so fingers crossed everything goes through ready for your new arrival!
RemyHadley · 27/08/2020 16:51
In your circumstances I wouldn’t worry about it, better just to get the deal done ASAP.
MoreGinPlease2020 · 27/08/2020 22:26
Thanks @missmarplesapprentice @RemyHadley that's helpful to confirm what I was thinking.
jelly79 · 27/08/2020 22:37
What does this mean? I am about to exchange and need to complete pretty quickly after if we can
Itscoldouthere · 27/08/2020 22:38
I recently sold and had a Covid clause as part of the contract, but we had a month between exchange and completion.
We were in a short chain just us with no onward purchase and our buyers weren't selling anything, but they had a business mortgage which took a long time to arrange, so our solicitor recommend the clause.
Thankfully all went through fine, although we didn't receive funds until 5pm on the day of completion.
I think with only a week between exchange and completion, I wouldn't bother, especially if you've already signed the contract.
MoreGinPlease2020 · 29/08/2020 13:47
Thanks @Itscoldouthere that's really useful.
I think we're not going to bother and just concentrate on making sure exchange actually happens.
MoreGinPlease2020 · 02/09/2020 21:04
We exchanged today and decided against the Covid rider as that would have delayed things longer than we wanted, so here's hoping nobody in our short chain becomes symptomatic in the next 10 days! Thanks all for your input.
Itscoldouthere · 05/09/2020 04:20
Good luck with it all.
To comment on this thread you need to create a Mumsnet account.